CONTRACT
QUANTITATIVE
QUALITATIVE
RISK RESPONSE
1. CLEAR SCOPE OF SERVICES Does the proposed professional services agreement provide a clear and sufficiently detailed scope of services? 2. BALANCE OF RESPONSIBILITY AND AUTHORITY Do all of the proposed contract forms (e.g., client/ prime consultant, prime consultant/subconsultant, client/general contractor) establish clear and distinct responsibilities balanced by the authority to carry out those responsibilities? 3. CLEAR PAYMENT TERMS Are the payment terms clearly delineated, including terms for additional services and reimbursable expenses? 4. CLEAR, EQUITABLE TERMINATION PROVISION Is there a provision that establishes fair terms for terminating the contract should that become necessary? 5. EQUITABLE DISPUTE RESOLUTION PROVISION Does the contract contain dispute resolution provisions (e.g., good faith negotiation or mediation) that are fair and balanced? 6. BALANCE OF RISKS AND REWARDS Does the overall contract fairly allocate risks and rewards? Imbalances may be addressed by negotiating well-drafted indemnity, limitation of liability, or waiver of damages clauses. 7. INSURANCE ISSUES Are there provisions that create insurance coverage questions or uninsurable professional or general liability exposures? You may wish to ask a representative of your insurance carrier to review any questionable provisions. 8. CLIENT-CONTROLLED Are you being asked to work with consultants selected by the client? Will you have coordination responsibilities for consultants not under your control?
9. OTHER
OVERALL CONTRACT ASSESSMENT
52 • From Risk to Profit - Benchmarking and Claims Studies
Victor
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